AUSTRIAN POST H1 2012 INVESTOR PRESENTATION Georg Pölzl/CEO, Walter Oblin/CFO Vienna, August 10, 2012
1. Highlights and overview 2. Performance of the divisions 3. Group results 4. Outlook for 2012 INVESTOR PRESENTATION H1 2012 Investor Relations Vienna, August 10, 2012 2
IMPORTANT OPERATIONAL MEASURES H1 2012 1. DEFENCE OF MARKET LEADERSHIP IN THE CORE BUSINESS Strengthening of position in the growing Austrian parcel market (B2C/B2B) Confirmation of market leadership in the Austrian mail market 3. ENHANCED EFFICIENCY AND FLEXIBILISATION OF THE COST STRUCTURE New performance-oriented remuneration model for delivery staff agreed upon with the Central Works Council 2. GROWTH IN SELECTED MARKETS Disposal of Benelux subsidiaries Strategic investments in CEE/SEE (Poland, Bulgaria) 4. CUSTOMER ORIENTATION AND INNOVATION Ongoing implementation of new selfservice solutions (Post Pick-Up Box) Expansion of online services INVESTOR PRESENTATION H1 2012 Investor Relations Vienna, August 10, 2012 3
FINANCIAL HIGHLIGHTS H1 2012 1 Revenue Revenue rise of 3.1% in H1 despite weaker economy Positive half-year development in mail and parcel segments 2 3 4 Earnings Cash flow Balance sheet EBITDA up 6.5% to EUR 132.9m EBIT rise of 13.5% to EUR 92.2m Operating cash flow before changes in working capital: EUR 112.3m (+20.4%) Free cash flow before acquisitions: EUR 87.4m Equity ratio of 40.7% High liquidity and low debt ratio 5 Outlook Stable or slightly higher revenue in 2012 Targeted earnings improvement INVESTOR PRESENTATION H1 2012 Investor Relations Vienna, August 10, 2012 4
REVENUE IMPROVEMENT OF 3.1% EUR m +3.1% 1,137.9 1,173.1 +4.9% 410.9 Parcel & Logistics 430.8 726.5¹ +2.1% Mail & Branch Network 741.6 H1 2011 H1 2012 Mail & Branch Network Parcel & Logistics Solid revenue growth in spite of economic uncertainties Parcel & Logistics: Growth in e-commerce and further market share gains in the B2B segment Mail & Branch Network: Revenue increase despite cautious advertising industry, positive special effects 1) Reporting according to the new segment structure as of Jan. 1, 2012; figures for 2011: pro-forma consolidation INVESTOR PRESENTATION H1 2012 Investor Relations Vienna, August 10, 2012 5
GROUP EBIT INCREASE OF 13.5% EUR m +13.5% 81.3 +12.4 +1.1 Earnings improvement in the operating divisions -2.5 92.2 Positive earnings development in both divisions based on revenue increase and enhanced efficiency Corporate: higher provisioning requirements already in Q1 due to lower discount interest rate H1 2011 Mail & Branch Network Division Parcel & Logistics Division Corporate/ Consolidation H1 2012 INVESTOREN PRESENTATION H1 2012 Investor Relations Vienna, August 10, 2012 6
1. Highlights and overview 2. Performance of the divisions 3. Group results 4. Outlook for 2012 INVESTOR PRESENTATION H1 2012 Investor Relations Vienna, August 10, 2012 7
MAIL & BRANCH NETWORK DIVISION: TOP ISSUES H1 2012 1 Customer-oriented structural change in the branch network Joint branch network with BAWAG P.S.K. Implementation of the new post office design 2 New sorting technologies to enhance efficiency Three high-tech collators distribution centres for the KUVERT New remuneration system for delivery staff 3 Entry into Polish and Bulgarian markets Acquisition in Poland in the field of unaddressed mailings 26% share of postal service provider in Bulgaria INVESTOR PRESENTATION H1 2012 Investor Relations Vienna, August 10, 2012 8
MAIL & BRANCH NETWORK DIVISION: REVENUE RISE OF 2.1% 1 Letter Mail & Mail Solutions 7.0% 211.1 205.2 181.0 183.8 188.3 185.1 Revenue up 7.0% in H1-1 working day more in Q1 2012, 1 working day less in Q2 2012 - New product portfolio as of May 1, 2011 - Various Internet shipments sent as letter mail items instead of parcels Direct Mail and Media Post -0.5% 143.2 143.5 138.5 158.3 145.4 139.8 Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Volume shifts from direct mail items to higher quality letter mail products Slight decline in H1 - Economic uncertainty leads to reduced advertising expenditures - Structural decreases in the field of mail order business 1) Reporting according to the new segment structure as of Jan. 1, 2012 INVESTOR PRESENTATION H1 2012 Investor Relations Vienna, August 10, 2012 9
BRANCH NETWORK: STRUCTURAL TRANSFORMATION AND INTEGRATION Sustainable structural transformation of the branch network in order to improve service and the cost structure 1,552 418 1,850 1,876 1,880 1,878 1,889 1,117 1,212 1,258 1,266 1,283 Further conversion approx. 2,000 Statutory minimum of 1,650 Postal partners 1,134 733 664 622 612 606 Companyoperated branches 12/2009 12/2010 06/2011 12/2011 03/2012 06/2012 Target structure INVESTOR PRESENTATION H1 2012 Investor Relations Vienna, August 10, 2012 10
PARCEL & LOGISTICS DIVISION: TOP ISSUES H1 2012 1 Growth in Austria Consistent expansion of B2B market share Extension of service portfolio: acquisition of Systemlogistik 2 trans-o-flex: continuation of optimisation measures Sale of Benelux subsidiaries successfully concluded Efficiency measures for combined freight jointly implemented with system partners 3 European market development Promotion of export activity Active market development in CEE INVESTOR PRESENTATION H1 2012 Investor Relations Vienna, August 10, 2012 11
PARCEL & LOGISTICS DIVISION: REVENUE INCREASE OF 4.9% Germany 8.2% 6.0% 5.0% 1.8% 3.4% 2.9% Germany: Revenue up 3.2% in H1 2012 due to changed product portfolio Austria 2.9% 5.5% 8.2% 9.7% 10.6% 1 12.2% 1 Austria: Revenue rise of 11.4% 1 in H1; impetus from online shopping and market share increase with business customers South East and Eastern Europe 11.1% 7.9% 5.9% 4.2% 1.9% 0,2% Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 1) Revenue development excl. value logistics (part of the Parcel & Logistics Division since Jan. 1, 2012) South East and Eastern Europe: Double-digit volume growth combined with price pressure leads to revenue increase of 1.9% in H1, including negative currency translation effects INVESTOR PRESENTATION H1 2012 Investor Relations Vienna, August 10, 2012 12
1. Highlights and overview 2. Performance of the divisions 3. Group results 4. Outlook for 2012 INVESTOR PRESENTATION H1 2012 Investor Relations Vienna, August 10, 2012 13
OVERVIEW OF KEY H1 2012 FINANCIAL INDICATORS H1 2011 H1 2012 1 Revenue 1,137.9 1,173.1 Revenue improvement of 3.1% 2 EBITDA margin 11.0% 11.3% Margin in the targeted range of 10-12% 3 EBIT margin 7.1% 7.9% Further increase in profitability 4 Free cash flow before acquisitions 65.1 87.4 Positive development with +34,3% 5 Solid balance sheet structure Equity ratio 39.1% 40.7% 6 Gearing 24.8% 20.0% Net debt to equity ratio on a low level INVESTOR PRESENTATION H1 2012 Investor Relations Vienna, August 10, 2012 14
INCOME STATEMENT EUR m H1 2011 H1 2012 Change % absolute Q2 2011 Q2 2012 Revenue 1,137.9 1,173.1 +3.1% +35.2 566.5 567.4 Raw materials, consumables and services used -360.8-379.5 +5.2% +18.6-178.1-188.6 Staff costs -540.6-549.5 +1.7% +8.9-273.9-265.2 Other operating expenses -143.6-142.4-0.8% -1.2-77.8-73.0 At equity consolidation -3.0-2.0 +31.8% +1.0-0.9 0.6 EBITDA 124.8 132.9 +6.5% +8.1 53.9 57.1 EBITDA margin 11.0% 11.3% - - 9.5% 10.1% Depreciation and amortisation -43.5-40.6-6.6% -2.9-21.4-20.6 EBIT 81.3 92.2 +13.5% +10.9 32.5 36.4 EBIT margin 7.1% 7.9% - - 5.7% 6.4% EBT 79.4 91.3 +15.1% +12.0 31.6 35.7 Income tax -17.4-20.6 +18.2% +3.2-7.0-6.3 Profit for the period 62.0 70.8 +14.2% +8.8 24.6 29.4 INVESTOR PRESENTATION H1 2012 Investor Relations Vienna; August 10, 2012 15
MAIL & BRANCH NETWORK DIVISION: INCOME STATEMENT EUR m H1 2011 H1 2012 Change % absolute Q2 2011 Q2 2012 Revenue (external sales) 726.5 741.6 +2.1% +15.1 363.9 356.6 Letter Mail & Mail Solutions 364.8 390.3 +7.0% +25.4 183.8 185.1 Direct Mail 218.2 213.6-2.1% -4.6 108.0 104.0 Media Post 68.4 71.6 +4.6% +3.2 35.5 35.9 Branch Services 75.0 66.1 3-11.9% -8.9 36.6 31.7 Total revenue 1 762.5 775.2 +1.7% +12.7 381.8 373.4 EBITDA 138.6 150.2 +8.4% +11.6 70.0 68.4 EBITDA margin 2 18.2% 19.4% - - 18.3% 18.3% Depreciation and amortisation -15.9-15.2-4.6% -0.7-8.0-7.7 EBIT 122.7 135.0 +10.1% +12.4 62.0 60.7 EBIT margin 2 16.1% 17.4% - - 16.2% 16.2% 1) External sales plus internal sales 2) EBIT and EBITDA in relation to total revenue 3) New segment structure leads to recognition of value logistics revenue of about EUR 5m as part of the Parcel & Logistics Division INVESTOR PRESENTATION H1 2012 Investor Relations Vienna, August 10, 2012 16
PARCEL & LOGISTICS DIVISION: INCOME STATEMENT EUR m H1 2011 H1 2012 Change % absolute Q2 2011 Q2 2012 Revenue (external sales) 410.9 430.8 +4.9% +19.9 202.4 210.1 Total revenue 1 423.2 435.3 +2.9% +12.2 208.3 212.2 EBITDA 22.0 22.0 +0.3% +0.1 10.9 9.2 EBITDA margin 2 5.2% 5.1% - - 5.2% 4.3% Depreciation and amortisation -11.7-10.7-8.7% -1.0-5.8-5.4 EBIT³ 10.3 11.4 +10.5% +1.1 5.1 3.8 EBIT margin 2 2.4% 2.6% - - 2.5% 1.8% 1) External sales plus internal sales 2) EBIT and EBITDA in relation to total revenue 3) Earnings 2012 including final transaction costs for exit from Benelux INVESTOR PRESENTATION H1 2012 Investor Relations Vienna, August 10, 2012 17
SOLID BALANCE SHEET STRUCTURE Assets (EUR m): Cash and cash equivalents/securities of EUR 271m after Q2 dividend payment of EUR 115m 1,650 1,619 264 238 55 52 33 66 409 425 0 3 Cash and cash equivalents Securities Financial assets incl. interest-bearing receivables Inventories, receivables and other assets Held-for-sale Equity and liabilities (EUR m): Low level of financial liabilities of EUR 26m 1,650 1,619 72 26 459 442 14 14 362 372 98 105 Financial liabilities Interest-bearing provisions and liabilities Other Liabilities Non interestbearing provisions 871 854 Property, plant and equipment and intangible assets 645 660 Capital and reserves June 30, 2011 June 30, 2012 June 30, 2011 June 30, 2012 INVESTOR PRESENTATION H1 2012 Investor Relations Vienna, August 10, 2012 18
CASH FLOW IN H1 2012 ABOVE THE PRIOR-YEAR LEVEL EUR m +19.0m 93.3 112.3-9.0 +22.3m +9.6 87.4-25.5 37.7 Acquisitions as well as EXIT from Benelux H1 2011 H1 2012 Changes in CAPEX Operating cash flow before changes in net working capital working capital Other H1 2012 Free cash flow before acquisitions/divestments INVESTOR PRESENTATION H1 2012 Investor Relations Vienna, August 10, 2012 19
1. Highlights and overview 2. Performance of the divisions 3. Group results 4. Outlook for 2012 INVESTOR PRESENTATION H1 2012 Investor Relations Vienna, August 10, 2012 20
OUTLOOK CONFIRMED FOR 2012 Market environment Dampened economic situation impacts development in the field of letter mail, direct mail and parcels Structural change: electronic substitution reduces addressed letter mail items; parcel growth due to Internet shopping Revenue Stable to slightly positive revenue development expected on a comparable basis Costs & investments Continued focus on automation, efficiency enhancement and structural improvements CAPEX of about EUR 90m expected Earnings Sustainable EBITDA margin of 10 12% Focus on further improving EBIT Continuation of attractive dividend policy INVESTOR PRESENTATION H1 2012 Investor Relations Vienna, August 10, 2012 21
STRATEGIC FOCUS 1. DEFENCE OF MARKET LEADERSHIP IN THE CORE BUSINESS Two-brand strategy and focus on advertising market Expansion of B2C and B2B market share in Austria 2. GROWTH IN SELECTED MARKETS Exploitation of potential in CEE and growth in Mail Solutions Extension of service portfolio (e-fulfillment, pharmaceuticals) 3. ENHANCED EFFICIENCY AND FLEXIBILISATION OF THE COST STRUCTURE Productivity increase in letter mail logistics Earnings improvement programme for international parcel and logistics operations 4. CUSTOMER ORIENTATION AND INNOVATION Optimisation of branch network products and post office design Enhancement of customer convenience via 24/7 solutions INVESTOR PRESENTATION H1 2012 Investor Relations Vienna, August 10, 2012 22
CONTACT Österreichische Post AG Investor Relations Haidingergasse 1, 1030 Vienna Website: www.post.at/ir E-mail: investor@post.at Phone: +43 57767-30401 Fax: +43 57767-30409 Financial calendar 2012 Aug. 10, 2012 Interim report H1 2012 Nov. 16, 2012 Interim report Q1-3 2012 Disclaimer This presentation contains forward-looking statements, based on the currently held beliefs and assumptions of the management of Austrian Post, which are expressed in good faith and, in their opinion, reasonable. These statements may be identified by words such as expectation or target and similar expressions, or by their context. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance, or achievements of Austrian Post, or results of the postal industry generally, to differ materially from the results, financial condition. performance or achievements expressed or implied by such forward-looking statements. Given these risks, uncertainties and other factors, recipients of this document are cautioned not to place undue reliance on these forward-looking statements. Austrian Post disclaims any obligation to update these forward-looking statements to reflect future events or developments. Austrian Post Legal form: Public limited company under Austrian law Registered seat in the Municipality of Vienna Commercial register number FN 180219d of the Commercial Court of Vienna This presentation can contain legally protected and confidential information and is protected by copyright. The reproduction, dissemination or duplication of this presentation, either in part or a as whole, requires the express written permission of Austrian Post. INVESTOR PRESENTATION H1 2012 Investor Relations Vienna, August 10, 2012 23